Question
Could you please kindly help to provide step by step explanation and show the appropriate graphs for the following scenario? The unemployment has increased from
Could you please kindly help to provide step by step explanation and show the appropriate graphs for the following scenario?
The unemployment has increased from 4.9% to 8.7% during the same time the inflation rate dropped from 1.7% to 0.5 % and the government had budget deficit. They want to use fiscal policy to spur rapid growth of real GDP. It is weighting whether to spend more on infrastructure programs or to cut income taxes. 1. use graphs to show an explain the short and long run effects of new infrastructure expenditure 2. use graphs to explain to show how a cut in income taxes would change macroeconomic variables in the short run and long run 3. explain which one of the fiscal policies would increate the rate of economic growth 4. explain the risks of 2 fiscal policy and what other policies would you recommend to minimize these risks.
Thank you so much for your help! Greatly appreciated!
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